APLNG cash flows were slightly ahead of Citi’s expectations. The break-even operating oil price is now calculated at US$21/bbl.
Citi downgrades FY19 estimates for earnings per share by -7% because of non-cash provision charges associated with the Osborne remediation.
The broker maintains a Neutral rating and raises the target to $7.78 from $7.58.
Target price is $7.78.Current Price is $7.94. Difference: ($0.16) – (brackets indicate current price is over target). If ORG meets the Citi target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).